RICHMOND — This city could soon become a major hub for marijuana cultivation and manufacturing after the passage of one of the most liberal policies in the Bay Area.

Starting Friday, Richmond will allow an unlimited number of permits for commercial cannabis grows as well as businesses that produce edibles like cookies, brownies and tinctures. The goal of the new law is to bring a sometimes shady industry into the sunlight and generate money for a city that is perpetually strapped for cash.

“We’re going to be in full tax-collection mode,” said Mayor Tom Butt, who spearheaded the initiative and estimates that it could bring in a minimum of $1 million each year. “We want the money.”

The move is similar to recent changes in Oakland, which in May expanded the number of medical marijuana dispensaries and related businesses operating in the city. That city’s policy is expected to bring in an estimated 30 cultivators and 28 manufacturing businesses.

In contrast, all other cities in Contra Costa and Alameda counties ban marijuana cultivation, with the exception of Martinez, which allows it at approved dispensaries.

“Richmond is out ahead of the curve on this and one of the jurisdictions leading in this movement to regulate this activity,” said Alex Zavell, a senior regulatory analyst at the Robert Raich law firm in Oakland, which focuses on medical cannabis cases. “It’s an approach that uses zoning tools to equate cannabis activity to other industrial and commercial uses instead of putting some sort of cap on activities.”

Under the new law, businesses will be required to locate in neighborhoods zoned light industrial and submit detailed security and safety plans that will be reviewed by both the Police and Fire departments. Applicants will also have to show that their facility will derive 100 percent of its energy from renewable materials before the application is even considered by the City Council. Once up and running, the businesses will be taxed 5 percent of all sales.

Temple Extracts, a cannabis oil and extract manufacturing company now based in Berkeley, is one of a handful of applicants lining up for a permit.

“Berkeley is great, but it doesn’t have any available warehouses,” said Michael Bardin, one of the company’s owners. “Richmond has appropriate space and is doing a great job at developing regulation and oversight for the developing cannabis market.”

The changes come after the passage last fall of the state Medical Marijuana Regulation and Safety Act, an attempt to create guidelines for the industry nearly two decades after California voters legalized medical marijuana. The new legislation, which sets up a formal state licensing process scheduled to take effect Jan. 1, 2018, has prompted a scramble by cities to establish clearer guidelines for medical cannabis operations.

But while most Contra Costa cities have affirmed their ban on commercial cultivation, citing concerns over violating federal law and increased crime, Richmond is welcoming it with open arms.

The additional revenue is much needed in Richmond, which had been grappling with a $12 million budget deficit. The budget has now been balanced, according to the city, but through deep cuts to parks and recreation, the library, neighborhood cleanups and programs that work with at-risk youths.

In another sign that Richmond is angling to become a front-runner in the medical cannabis industry, a local dispensary will host a Community Cannabis Expo on Thursday.

“It is our hope that by bringing everyone together in the same space — city officials, law enforcement, teachers, parents, growers, manufacturers and patients — we can help to allay whatever fears our community members might have about medical cannabis and its effect on our community,” said Zee Handoush, owner of the 7 Stars Holistic Healing Center. The event will be held from 5 to 8 p.m. at 7 Stars Holistic Healing Center, 3288 Pierce St., Suite M108, on the second floor of Pacific East Mall. Entrance is free and open to the public.

When: 5-8 p.m. ThursdayWhere: 7 Stars Holistic Healing Center, 3288 Pierce St., Suite M108 on the second floor of the Pacific East Mall in Richmond. Cost: Free and open to the public. The skinny: No samples will be distributed. For educational and business-networking purposes only.

Karina Ioffee covers the city of Richmond and West Contra Costa County. She has been a reporter for 15 years and has won numerous awards for her work, including from the Overseas Press Club. She speaks Spanish and Russian and is a former competitive gymnast. When not working, she likes to do yoga, cycle and dance.

The rule announced by the administration of President Donald Trump in June would allow health care institutions and many types of workers to refuse services on religious grounds and would deny federal health, welfare and education funds to state and local governments that don't comply.